Forum Archive Index - October 2000

["hugh webber" <hugh.webber@clear.net.nz>]

And up to 86 cents cents today - with a 13.7% gross yield at 84 cents.
Its not the 'commercial property market' but the government offices
property market in central Wgtn you should be looking at and Cap Props
has got most of this tied up so they're just not another commercial ppty
coy. 
Slightly amusing how the ppty coys all attempt to throw mud at each other
- No, we're an industrial ppty coy says one so we don't deserve 
a (share price) discount;
No we've got a longer track record than Cap Props says another so we
don't deserve a discount.
I'm happy to buy at the discount for the 13.7% yield in the belief that IRD
& are not going to go bankrupt over the next 5 years of their lease.
All the ppty coys get embroiled in the silly constant accounting changes;
its the cash flow and the quality of the management that counts.
Still, I can't avoid the sneaking suspicion that Cap Props would have 
done better to buy up some more government tenanted buildings
in Central Wellington than takeover Shortland Props. If only they
could get their 59.7% leased building (Oracle Tower) in Auckland 
up to a higher percentage.
Good to see the Cap Props new website as long as they don't get too
diverted
playing with it!

On your other question I think I saw house prices had gone up 5.5%
in the last year in Wgtn - hopefully good news when u r trying to sell
a house there as we are. This 5.5% left all the other centres for dead.

I guess it all goes to show the value of value investing.

cheers,
Hugh


----------
> From: michgore <michgore@i4free.co.nz>
> To: sharechat@sharechat.co.nz
> Subject: [sharechat] Capital Properties
> Date: Wednesday, 4 October 2000 14:59
> 
> Hi Everyone,
> I sold up my Capital Properties shares a month or so ago at 86 cents.  I
> was disheartened to see this share rise to 94 cents almost immediately
> afterwards but then also watched it drop to 82 cents last week.  A
> property stock shouldn't be so volatile, should it?  Last week there was
> a news item about their having signed up two new long term leases, well
> I suppose that's got to be good news but the news item quoted their
> director saying that this was a sign of the positive demand for office
> space in Wellington.  I don't know too much about the commercial
> property market but this would not seem to be the case if you stroll
> around Wellington City and check out all the “To Lease” signs.  And
> there was all the news not long ago about how they chose to account for
> the downgrade of their building valuations.  Is this just another
> company Director trying to talk up his share price?  David McEwen last
> week rated this one a sell at 84 cents, what do chatters think?  At what
> price would it become a bargain?
> I'm also wondering about the growth of residentiol apartments in central
> Wellington.  Have aparments become affordasble because of a lack of
> demand by Commercial tenants?  Given that we have negative population
> growth, new homes being built, and a move of residential into the city,
> then what does this do to house values in a place like, say Miramar?  I
> heard on the news that Wellington houses have been rising in value
> against the national trend.  I can't understand why this would be.
> Sorry if I have too many questions.  Regards michael
> 
> 
>
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